Key Takeaways
- • YourNest VC's first fund, launched in 2012 with $14 million in capital, achieved a 3.3x Distributed to Paid-In (DPI) multiple, demonstrating strong early-stage venture returns and validating the firm's Pre-Series A investment thesis across 16 portfolio companies.
- • The firm currently manages $75 million across multiple funds with a 50-company portfolio, having completely deployed its first fund while progressing through subsequent vehicles (Fund II at $30 million launched in 2017; Fund III targeting $100 million after greenshoe exercise).
- • Fund II portfolio companies, including Miko, Dozee, and Exponent Energy, have demonstrated early "Dragon" status—companies with potential to return the entire fund corpus in a single exit—indicating substantial value creation in the DeepTech and enterprise software segments.
- • YourNest launched a Rs 400 crore continuation fund (YourNest Continuum Fund I) as of June 2026, anchored by HDFC AMC Select FoF I, signaling sustained institutional confidence and access to follow-on capital for portfolio acceleration.
- • CRISIL ranked YourNest's Fund II 7th among 48 Alternative Investment Funds launched in FY17, positioning the firm within India's top-quartile early-stage VC performers on risk-adjusted returns and portfolio quality metrics.
Summary
YourNest Venture Capital, established in 2011 as a sharply focused Pre-Series A fund house, has delivered measurable returns from its inaugural investment vehicle, demonstrating viability in India's early-stage technology venture ecosystem. The firm's first fund, capitalized at $14 million and launched in 2012, closed with a 3.3x DPI multiple after deploying capital across 16 portfolio companies. This multiple—representing the cumulative return of distributed capital plus remaining fund value relative to total capital called—positions YourNest's early performance within competitive ranges for early-stage venture funds, particularly in emerging markets where operational leverage and founder-market fit present asymmetric return opportunities.
The firm's evolution reflects successive fundraising tied to demonstrated outcomes and institutional recognition. Fund II, raised at $30 million in 2017, invested across 19 Indian startups with explicit focus on DeepTech sectors including IoT and SaaS. By March 2021, CRISIL's Alternative Investment Fund assessment ranked YourNest Fund II 7th among 48 AIFs launched in FY17—a credible endorsement from India's leading rating agency that captures both performance trajectory and portfolio composition quality. More significantly, several Fund II portfolio companies—Miko, Dozee, and Exponent Energy—have achieved early-stage "Dragon" designation, indicating estimated exit potential capable of returning the entire fund corpus in a single transaction. This concentration of value creation within a smaller subset of portfolio companies aligns with classic venture capital power-law distributions, where top-quartile outcomes subsidize portfolio-level returns.
YourNest's current scale reflects sustained fundraising momentum and LP confidence. The firm manages $75 million across its fund family with a 50-company portfolio spanning multiple vintage years. Fund III, launched in 2021, is expected to close at $100 million after exercise of greenshoe options, indicating institutional investor demand and the firm's proven ability to deploy capital responsibly. Most recently, as of June 2026, YourNest launched YourNest Continuum Fund I at Rs 400 crore, anchored by HDFC AMC Select FoF I, a continuation vehicle designed to support follow-on investments in existing portfolio companies approaching growth inflection points. This capital structure—pairing continuation capital with new fund vehicles—reflects evolving LP preferences toward portfolio company nurturing alongside new deployment, reducing dilution risk for early-stage stakeholders while maximizing upside participation.
The firm's positioning as a "Nurture Capital" provider, combining financial deployment with mentorship networks and advisory support, differentiates YourNest within a fragmented early-stage VC landscape. Typical check sizes of $500,000 to $1 million enable meaningful ownership stakes while preserving portfolio breadth, and the focus on technology-led, enterprise-driven, and DeepTech startups aligns with India's structural pivot from IT services outsourcing to IP-driven product innovation. The 3.3x first-fund return, combined with emerging Dragon-status companies in Fund II and continued institutional LP backing through Fund III and the new continuation vehicle, establishes YourNest as a credible performer in early-stage Indian venture capital with repeatable sourcing, selection, and value-creation capabilities.
The firm's evolution reflects successive fundraising tied to demonstrated outcomes and institutional recognition. Fund II, raised at $30 million in 2017, invested across 19 Indian startups with explicit focus on DeepTech sectors including IoT and SaaS. By March 2021, CRISIL's Alternative Investment Fund assessment ranked YourNest Fund II 7th among 48 AIFs launched in FY17—a credible endorsement from India's leading rating agency that captures both performance trajectory and portfolio composition quality. More significantly, several Fund II portfolio companies—Miko, Dozee, and Exponent Energy—have achieved early-stage "Dragon" designation, indicating estimated exit potential capable of returning the entire fund corpus in a single transaction. This concentration of value creation within a smaller subset of portfolio companies aligns with classic venture capital power-law distributions, where top-quartile outcomes subsidize portfolio-level returns.
YourNest's current scale reflects sustained fundraising momentum and LP confidence. The firm manages $75 million across its fund family with a 50-company portfolio spanning multiple vintage years. Fund III, launched in 2021, is expected to close at $100 million after exercise of greenshoe options, indicating institutional investor demand and the firm's proven ability to deploy capital responsibly. Most recently, as of June 2026, YourNest launched YourNest Continuum Fund I at Rs 400 crore, anchored by HDFC AMC Select FoF I, a continuation vehicle designed to support follow-on investments in existing portfolio companies approaching growth inflection points. This capital structure—pairing continuation capital with new fund vehicles—reflects evolving LP preferences toward portfolio company nurturing alongside new deployment, reducing dilution risk for early-stage stakeholders while maximizing upside participation.
The firm's positioning as a "Nurture Capital" provider, combining financial deployment with mentorship networks and advisory support, differentiates YourNest within a fragmented early-stage VC landscape. Typical check sizes of $500,000 to $1 million enable meaningful ownership stakes while preserving portfolio breadth, and the focus on technology-led, enterprise-driven, and DeepTech startups aligns with India's structural pivot from IT services outsourcing to IP-driven product innovation. The 3.3x first-fund return, combined with emerging Dragon-status companies in Fund II and continued institutional LP backing through Fund III and the new continuation vehicle, establishes YourNest as a credible performer in early-stage Indian venture capital with repeatable sourcing, selection, and value-creation capabilities.
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